1. Technical Field
The present invention generally relates to a business method and more particularly, to an apparatus, method, program and system for securing the total ownership cost of motor vehicles or vehicles used for transporting of goods, services or passengers. After securing the total ownership cost, the user may then solicit others to share in the ownership of the asset using time sharing partnership which are offered through an auction routine. The invention uses financial modelling to determine the risk associated with sell and buy price to lock in the total ownership cost and more particular financial option models.
2. Background
Motor vehicle price, particularly in the luxury category is constantly changing as well as rising, with availability subject to present economic situation. More consumers would like to be able to lock in this price while they are still able or at least to lock in the future price to provide some certainty to their funding requirements to purchase the vehicle. Consumers would also like to be certain of a particular delivery date guaranteed by the manufacturer or dealer as the case may be. The current situation is not acceptable because upon payment of a deposit (generally 10 percent of the final price), the consumer is forced to accept whatever delivery date suitable to the manufacturer or dealer with no manner to track the delivery status of the vehicle. In addition, the final price might change and is passed to the consumer as extra cost. This invention calculates a booking fee as a premium according to heuristic rules corresponding with a pre-set delivery date, cost of funds and historical volatility of the prices. Therefore, the system allows the user to set this delivery date and further assigns a queuing number upon paying the calculated booking fee. Given that by paying the booking fee, a contract guarantying the final vehicle price is completed. The potential buyer will have more time to shop for the necessary financing knowing that the amount payable is fixed. The said contract however provides the buyer with the right to purchase at the fixed price but not the obligation in consideration for payment of the booking fee.
Just as equally important is for the motor vehicle owner to sell the motor vehicle in the future at a price agreeable now. In the same manner as a booking fee above, the motor vehicle owner in this case will pay a potential purchaser a buy-back fee in consideration to bind the purchaser in a contract that gives the vehicle owner the rights but not obligation to sell at a pre-agreed price in predetermined time period. The purchaser in this case can be the manufacturer of the motor vehicle or a dealer or a private individual organisation. In the event of a trade in, the pre-agreed price may represent the economic value of the trade in value. While this invention is intended for motor vehicle, one skilled in the art can be reasonably adapt it for aircraft, ships, motor bikes, trucks or any means of transportation. By paying a buy-back fee and a booking fee, the motor vehicle owner will be guaranteed the purchase price and selling price (subject to specifics in the contract), which means complete certainty to the total ownership cost of the vehicle as calculated by purchasing price plus booking fee plus buy-back fee less selling price. Therefore, it is a stated object of the invention to provide a motor vehicle purchaser with a certain purchasing price of a motor vehicle in the future, a certain selling price of the same vehicle in the future. It is also another stated object of the invention to provide certainty to the total ownership cost of the vehicle in accordance to the period as determined by the purchaser. By design, it is also another stated object of this invention to provide predictable capacity planning to the manufacturer by considering the number of vehicle option sold.